Peugeot confirms re-entry to India in partnership by 2018

The re-entry was confirmed as part of the company's "Push to Pass" growth strategy, to be achieved by 2021.

PSA Peugeot Citroen is all set re-enter India in a partnership deal by 2018. Pictured: Peugeot 208 cars are parked at the PSA Peugeot Citroen plant in Poissy, near Paris, France, April 29, 2015Reuters

French car-maker Peugeot, which is now PSA Peugeot Citroen (Groupe PSA), is all set re-enter India via a partnership by 2018. The Groupe PSA India entry has been confirmed as part of the "Push to Pass" plan, a growth plan strategy of the company from 2016 to 2021.

The plan, announced by Carlos Tavares, chairman of Groupe PSA, envisions 17 products to be launched globally by 2021. A partnership deal in India by 2018 and the first product launch before the end of 2021 has been decided by the company, reports Autocar India.

The French car-maker was one of the early birds in India after the country's economy opened up for foreign investment in the early 1990s. The company had partnered with Premier Automobiles in 1994 and offered the 309 sedan. However, the partnership ran into trouble with labour issues, and Peugeot wound up its India operations in 1997. After over a decade, the second entry was confirmed five years ago, and the company showcased 3008 hybrid, RCZ, 3008 crossover and 908 LeMans car at the Auto Expo 2012. However, financial uncertainties prompted the company to shelve the plan.

In its third attempt, Groupe PSA is apparently taking a safer approach by opting for a partnership deal. Though there is no information on the India partner so far, The Economic Times in October 2015 had reported Tata Motors was in talks with the company. The report said Tata Motors would produce and distribute Peugeot cars from its Sanand facility in Gujarat. Another touted partner was Mahindra & Mahindra. The Indian manufacturer has already acquired a controlling stake in Peugeot Scooters and this may extended to the car business as well.